iphone 4 records rectangular

iPhone 4 records rectangular
location: imore.com - date: August 17, 2011
While I often record video with my phone there is something about it that really annoys me.
If you hold the phone vertically and record video and afterwards you'd upload it to Youtube or put it on your Mac the video is shaped rectangular!
Even if you put the video in full screen mode the video just stays rectangular but only bigger.
If you were to upload it to Youtube you'd have the same problem! Rectangular video and black edges!
Now if I were to hold the phone horizontally it broadcasts it in widescreen (used the complete Youtube Window)
Is there no possibility at all to make these video's widescreen or screen fitting?
VLC media player but shows my video horizontally....
Quicktime and iTunes do it correct, but rectangular.
Sigh...
I checked iMovie and there seems to be no function that would allow me to change this + it takes alot of time to render a video eacpost reply
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